Huntsman (HUN) 1 Aug 232023 Q2 Earnings call transcript

Hello, and welcome to the Huntsman Second Quarter 2023 Earnings Conference Call and webcast [Operator Instructions].

As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Ivan Marcuse, Vice President, Investor Relations and Corporate Development. Please go ahead.

Thank you, Kevin, and good morning, everyone. Quarter Call. Second Huntsman's to XXXX Earnings Welcome

the Joining Chairman, Web huntsman.com. Lister, CEO the earnings call for XXXX, Executive released quarter closed, Peter release Huntsman, today are posted after XX, and July via President the CFO. us equity our site, and markets we on Vice Yesterday, US XXXX President; press second and Phil our to

Huntsman commentary into our then posted also a Peter provide We call. Web the on for quarter XXXX move and slides comments detailed set opening the session second discussing and will site. remainder shortly a will some we of the answer of and question directly

future. while risks and that current this may of or about involve make All let they expectations, are they are statements and the future projections such statements, forward-looking reflect performance. remind During statements call, our and you guarantees not we our uncertainties for me expectations

regarding should publicly review the that We revising filings SEC actual with not could or the You forward-looking statements more any our or quarter. to on materially plan projections from the do cause expectations. these factors updating results differ during information for

site, release, as also has can to loss non-GAAP to will measures EBITDA, which to directly comparable And huntsman.com. financial most Web or in the We net earnings adjusted been find measures income and such our flow. refer cash reconciliation free adjusted you a financial our GAAP posted

the turn call Peter our now I'll President. to CEO Huntsman, Chairman, over and

to earlier to for questions is you our joining and you time new this that market meaningful format us that and results to our comments. for designed like more review morning. hope We provide give Thank the

moment some questions, the time. take to the observations and present at line broader opening like I'd we see that Before summarize this of for a

shaping but early view fundamental quarter, third some an of trends have murky rather the up. still are we As

inventory end American MDI that markets, and around the demand, prolonged I seeing North of we're destocking. believe Now particularly construction

homes real for built follow we all we projects There commercial and case are the not is fewer ago. products saw seeing XX applications, demand being trends. estate months seasonal currently more this While or and XX than are

would building early much we the construction tell as we destocking move this the of next bit recovery are and us may patterns order in starts year. longer However, into of a has take to recover. that Commercial ended

growth, markets. continue We the would to Chinese be in second a will initiative growth while and improvements. that characterized half inching of Short see economic government trends our This also as seasonally best to appears Asian to for MDI specifically major see it our of pricing are adjusted XXXX modest, upward. faster spur growth modest continue

raw recent A the though fight the policies broader Americas companies or is from economic still Pricing Energy for is yet regulations prices but in historical than aggressive Energy costs still multiple available. are Asia. and is to materials recovery highs, it absorb as markets is times where adequately higher Europe been capacity address ability domestic are to more abroad, losing products also while place. in and growing seem export and its taking demand in new imported that to the industrialization do unable not new down very what feels as and is Europe seeing added uncompetitiveness come. demand energy from particularly to European production. the in has

the in of unlike businesses. many decent economy, products, and I our we portfolio past look of overall recessions margins have our at in As maintained downturns

demand. problem today biggest Our is simply

the lower green year, coming to the obviously of worst cost, recovery we're America global advantage a any in unique not the product many and While We're I take sudden and and us a do behind is China, more this of position half of portfolio, customers North to recovery. and America, areas that in applications. North footprint much of see in in we particularly de-inventorying, closer given shoots quality fulsome Europe. but less we do second improvements of in expect so the believe our

I can't in about the balance perhaps the for So recovery but think need of To to we I our help will review preserve beginning. there, divestitures a and at quote 'XX, end, Churchill's you we think are and possible that and end continue we to both get the of sheet this our steps portfolio acquisitions.

in look We our streamline working at to as only efforts our continue to not are capital cost we'll costs but and ahead well.

earnings, in shareholders to and value returning to dedicated of repurchases. share dividends the are We form

open with why for line Operator, any that, we the don't questions?

[Operator Bank. first from Deutsche Instructions] Our question is David Begleiter from coming

about early, know but recovery it's think occurs of polyurethanes, as earnings XXXX? you how trajectory do in the Peter, I in growth

much I recovery. going depend the on is this the to think of of speed

again, So I opinion. North that believe is talking to here think because going -- -- again, I'm recovery America and about this my a particularly that be do just I

North supply the North America, think happen I precariously I I in in particular, Europe. levels recovery it sooner think in that a and the chains inventory going are America getting But as is to thin. China at will look and than

a may of that the supply Now a of if very of or there we in down anything when demand this chains be inventory, typically, even an MDI or plant increase price like comes spurt or crude of in something oil. perceived new sudden should industry, might But outages see a thin that the demand be normal. a like occur sudden spurt

into are shouldn't than refill up, refill used we -- you just -- would rather of to eventually the use more don't crude at something and going more to I ago to are from are word might look we to to, of aggressive be $XX I've we've a it see oil cause of today, an I where well, were seen we price where lows and the about so. seemingly people where that or we've or kind a come per quarter want and But would buying barrel start increase thinking, prices starts cause where inventory that You suddenly. to got stampede. the translate of If might

second I mean, give looking that we early trend. the when wouldn't not I even is to either. for me anticipating that again, half the -- but -- kind forecast don't of that surprise 'XX, more of and we're the I Personally,

As and more they're you industry industry. of of been you've that to have the rarely It's of that gradual or shock declines or industry long usually gradual as as improvements to very the trend a in this know, place sudden two. it’s Dave, a tendency events they're year kind the take over

ashamed sales have do from shy not going and our percentage we a away North insulation housing, market trying yes, we're So not something so into forth. to American and large it's energy construction, that we're a of That's of. that

an housing and lightweighting materials and building come. it us to be think to number numbers to better now, conservation It's the a to continue a believe recovery biggest of years so in will looking whole we're of probably, gradual turnaround And But applications for we half. But bioretardancy, energy that sooner I second where that continue throughout and improvement that's forth think right would my later. again, an opinion, see area going happen the will industry. coatings the in in for many tell I come. rather than and the and I opportunities, growth

LD benefits to just Shanghai are there the operations? on Huntsman configuration the of on And JV, any new the MDI

relationship material manufacturing with fight able comment been operating financial from on market great a the of us applications an any to to our see very over a both that. any an so their partners hell technology beating point prices excellent and share our strong BASF. can of and They'll and But side. operate been be other it's let partner business. an and and with of each marketplace MDI had forth. on I'm operate and be of to Phil Chinese of MDI we partnership, change technology the to go we'll the side and going and a They've relationship to great I with own We've up a our don't own able like view,

it's natural many, and planned So many for that's separation one years. a been for,

of that view? companies anything forth. obviously point here and and divide a add technologies financial of an of this kind can You from to so equal Phil, you'd tell

in we adjusted free said, remarks, liquidity. our impacts prepared think material flow cash no time David, on I and over EBITDA, on

flow some recycle get plant. we crude of free Peter as we may one said, EBITDA hydrochloric year think I to cash through year, we'll acid the will as course plant, see we important slight the MDI and move strategically benefits also next the get

target So good the will of us And a those. we split ratios of have. and therefore, coming grow differentiated more off that's for the have some improve balance to crude to and be plant some we of that businesses that able

and modeling, from impact. for was with essentially, And look, your material everyone. Chinese ago venture a So and joint three a decades forced it's no BASF But overall, partners. win-win perspective it

Markets. Capital KeyBanc Your is next Yefremov from coming Alex from question

on Peter, us China could about going year? maybe stronger you you Difficulty]. be could talked Difficulty] about next improvements polyurethanes [Technical there? There's business, and Any stimulus. in tell much talk [Technical signs that what's

I reopening. been that Well, China think it that we've seen lockdown economy when for in of that's full size I have the of believe long has, of you don't as as the impact an China

look ago. the think, as been from stands right also, In the pricing that's down As year, being polymeric in well. But now year about at I where it's high a around last it it's healthy was as note I that's year to it as where last XX.X, XX.X, been it's there.

see. gradual up a I I or what think get this period comes [leery] see seeing spike usually when because healthy -- we're recovery, two a always in that that So quickly that down is to quickly. it's I which a week occurs and goes

I around and to recovery infrastructure, a talking happening and this feels forth, as seeing so we me So not the forth. conservation, continue auto, what see did But to so about Wall it pretty recovery there's in there. just Journal recovery. quickly slow, around good a we're is energy note steady like Street materials the building morning

prices Difficulty]? talking spray in degree you're flat. your And in Are able maybe foam business, profitability? you North hold to How foam [Technical being a better then America than is volumes spray underlying to about

I was positive as down demand perspective. think from year-on-year. Spray were go So foam, a the really first recall, that a volumes it's to flat you note, and you'll

under terms probably you any And indicating of orange see them as that can contractors. has so spray you as been green foam the is call or and pressure to shoots, we'll on front. talk volume Pricing in that

been has has to forward move that fiberglass. one, market to as years depressed foam been reverse pressure as spray over replace spray on pricing the you and out expect So two we'd time, under continues undoubtedly

Our next Zekauskas from Jeff is coming JPMorgan. today from question

pricing major United sequential China? three about in talk your and you MDI States, Can Europe in trends regions, the

there look at that we're think this, as the we as see able pricing is mean, US And Again, some urethanes and I raw into perhaps tough APAC making those more. Europe it recovery materials we are look pretty in and continues I I tracking look margins. bit think gradually into to Well, -- think, to stronger into we a areas. to, continues I and

on I or to the so improving a think I staying about going it a share there's market And pricing struggle, for and see there's -- in in fight better and Europe in there. maybe real getting gains I'm again, margin I Asia. more optimistic gradually US least at flat think,

When and you contract or you MDI incremental assess think fast you global grow do the MDI demand in expansion? XXXX, has because how of capacity do how been added Chinese much market think will either

a Chinese to growth. zero that as we're the contraction that consecutive XX never -- market, flat year, need in business, Last growth. the negative we second a saw the that let of because XXXX we've to Phil meantime, expansion, X% Well, look just MDI been data. about the years years which two the we In seen of seeing a at one I've in I'm really in answer going up growth MDI, look he'll

of fact, so XX executive in MDI matter I'm years or years, MDI that's the two a forth. recession As seen XX in during sure not growth and

and this at half. be bullish replacing of It's it's product. and second this illness. you -- so continues applications a you've again, form or going I UPR forth latter optimist, great have be diagnosed year, I part to tendency have and an rubber a think -- I of to mental in and to some be that it's so. do to sound years in-roads this which or and want the to after look you overly elastomers in as MDI you'd with thermoplastic don't So continue to But replacing many making materials, on probably industry, insanity this be the

to next I continue growth think projected term growth, X% that we the positive a outstrip X%, going still additions out going fundamental capacity you going see the basis. as to to period. in see something is longer -- look MDI coming so, on for over that's five course or that around still be we're if the time will the of on years And the

the the future, of fundamental think part look the XXXX going that than like do years balances to see I XXXX. over you're MDI, beginning in more you

Just to up, Jeff. follow

as the history have two So said, back is unusual it's is typically, that MDI it either years back and demand snaps to and from snacks flat pretty Peter quickly negative to perspective. where in a that

one have question discipline, facility In supply, of is year, Fujian further. the of around out what they history assets of a time, they terms build XX%, over The share. of XXX-kilotonne Province They've frankly, market your this that’s overall. on Yantai XX% brought facility some their some indicated that will quite the Fujian, a the Wanhua

over over right those and year. the come that to snap to expect matching as growth expect you'd demand rates in recovers. are low time back X% a probably increase again, utilization MDI now coming and We demand

today Our America. of Matthew DeYoe is coming from next Bank from question

So been or into first the a on reason there margin volume than XX% that next come they the why more volumes would for basis, like or any I quarters. guess? business as margins two on decremental Is consolidated be year, your less should back has incremental the

want to I make sure understand question. the I So

down You have that XX%. the said dropped the drop margins that much? volumes Should

your or you from is to I like last drop top for it that recover. recover, of trying so at kind contribution? volume EBITDA through more be volume any the volumes, EBITDA XX% if Is look headwind next back flowing whatever, about volumes to I'm No, quarters. think than just year, decrements two volumes guess -- the why less should from the on line when reason as line there

high The volume decremental So quick. fell Matt, were because margins real pretty this is sharply. Ivan off the

the are If probably I leverage rate at an the operating you did around that Typically, would chemical decline, guess XX% company be XX%, to as know, of see on be time, as the tends to the sort a margins you upside. the volume over same But if would but increase same at XX% just it velocity, don't incremental average flow volume recovery. So dollar the were I would right? would it depends agree, but XX% spike, to depends Phil, it you know, to I of right? EBITDA, to the could on higher on the volumes very each least, expect to be decremental

you a obviously that And ticked home up. data kind construction have new with of about points Peter, talked bit.

reason maybe why foam the in mix I and and construction just that would that think to rebound point data in we building the of is there houses any insulation the new price lend the see who's from US? spray underperforming or outperforming

What have No, I the penetration, of The smaller of continue the in would first supposed we impact housing, you in to don't foam, that what be have point. selling homes we'll back be opinion, be to there's look an would to Actually, considered be believe great grow. the being that more and to get number that's built. in are economical, need percentage as going nearly believe that to is and my more about that saved percentage that I this to spray are equilibrium. if should utilities forth, a same so I homes to see to at

down start than housing at we housing see the that's so drop inventory. number So on the the right, X.X, XX% off, kind housing the maybe X.X we $X.X-ish like far That XX%, peak is at a in that look XX% run a about million basis. XXXX, of fell bit dropped around XX%, because in sort fell rate annualized was units XX%. at And off an the saw today, from housing up a, of on where X.X%, out When XXXX, volume it drop to of that. of starts obviously greater construction, the decrease And a volume XX%. around I more that

to new we do to need think we're to X.X minus to X.X 'XX, starts and that is in the that we consider where is million, -- half the adjusted we what get to perhaps this to so US that what X.X sort is million second back million were from And would first be a going back of I which I million. see in 'XX X.X what what normal volume XX%,

to housing million at was million, X.X we last Now quite were well. X.X time, doing

rather So there amount see XX% But XX% number. pricing a a drop. demand. in of higher and much When at tremendous a you’re I’d XX% to is versus difference to XX% looking drop

and looking typical as So is that when will well well XX% at quarter second up year from and we we’ll I was talk underway. CWP recovery we demand quarter amount. see being what for But When impacted insulation quarter-on-quarter is time to they’re basis, normal, about think by I the on us that up start seasonality being global first think when that built the was homes of about are built. that’s same be that new for the a

a Our up from that bit was quarter-to-quarter. up little still less spray foam than but

seeing we're second back quarter-to-quarter starting America. to foam, environment. also get stabilize, prices applications if spray again quarter, a going which up that SPF starting We're through first more of in lot to buildup a into to the quarter is not the from So North OSB normalized back seeing

this continue recovery is more signs, to is So the importantly optimism are housing say, than the all housing underway, positive give me massive would these I that de-inventorying. the would more end of recovery

look And Matt, the obviously, is And we forward homes below XXXX. to our matters, that still well starts, perspective family required. on replacement level housing from single therefore,

Kevin Your McCarthy Vertical next coming from from Partners. is Research question

opportunities growth divestitures. evaluating that intrigued exploring indicated remarks was you're Peter, as well. the released the in possible yesterday also you by of call the you're think top I that inorganic your comments I at

like the portfolio conceptually over can what So into specific maybe couple the of you details, to without with next years? would discuss do you getting

to and any I spend, the the and all, the and right office capital asset your into your portfolio that market that of got come focus your conditions projected management look sure portfolio, around make that your has the is first market your base. look at conditions team every at management think morning and present your attention, Well,

came to products we a And for so lot just in to we we so looked felt chemicals, we greening saw also and we right at foam be further our of in conservation these into composites adhesions used used that pigments will, And lot businesses and we be into if you we of portfolio, assets. so these intermediates, epoxy And time we textile and more forth. to and could owner expand can used expand in there were in when a forth we be in the energy weren't when spray structural opportunities and into MDI forth. hardeners so and

aggressively look of our going particularly about think future in advanced and of so the more think and products construction, want lot downstream green These are performance conservation and and adhesion, I We I even a fire to some to into. polymers that think we materials be these energy continue areas to as about very our in lightweighting, in think applications, I chemistry, I about be of the forth. looking about retardancy all particularly

view possible to fast our we're need to been assets, stay that add somebody a always As underperforming we've decisions we the at on for focused if times divestiture. as But look so or particularly portfolio financially change. need and got industry areas a financial continue leery right particular at assets changes to then point and of at I that change that. these make got for industry, mix, no we sciences for and at deal, might in I've a great says improvement the of going look be not always as there's those right that mean a other look somebody, of from be there's some an and painful we've particularly may

looking reminder, portfolio. always As as I a Peter Kevin, at mean, says, we're the

South performance We market Russian businesses. always in businesses, our have we'll DIY clearly assets, out continue at the very financial to American right? some of said that Asia around business look sold exited world. the sold We've and smaller Southeast exit We we're as looking we our our well, India, to

quarter XQ there beyond, then Can tailwind your on the MTBE And you a earnings and line was there into expect you what from can trajectory ongoing I had and secondly, or would strength nice equity you a not? China. speak tell in nice to

and demand clean good on the combination good Typically, that's gasoline. if there's side, higher usually on prices a oil are a MTBE. NGLs for lower quality If crude for the side are

they as fairly that are we think earnings probably to close stay ought those look I where So at equity today. to

from Your coming is today Research. Mitsch Frank next question from Fermium

yes, Ivan record, on new insane. format. props the you're for the don't think And Peter, I And to

and wanted make sure to But the I is I in there earlier out So insane do comments. got on just decline volumes XX% find I based that products what your performance each to end, negative rather will seems what the last least volumes at volumes? take to for for of it it When back or get us three positive quarters, large. less does

me I coming unfortunately sure that format. hate my nevertheless, change was from of dyslexic, you of that information lot my I I And not it for Yes, scripts. purposes, to water. a the But I'm carries just I'm idea friend. reading appreciate telling sound Being mind, it,

more And had a else. I than anything so desperation

think A and probably any on deinventorying. the the about that So yes, from of what construction oilfield forth services, treating, MDI. least think lot gas, we lot so was lube think energy unsaturated lot was saw and at we bit from some to was we look, business. sulfur of the where additives removal a the into that that a Performance business the which behind in sells of And of side, probably resin, fuel Products, that, we ag gas in little think of business that place, deinventory I real taking was saw our it businesses was about impact polyester one see last as I the a

growing place. those pretty were deinventorying were ago, starting falter taking we of and this If think year high businesses and a back housing MDI when to you to a starting starts lot were see

basis, I a some the it you going a first look Performance the on at look divisions. think, But when Products, quarter, I So than other that down if basis, think Performance bit down sequential volume Products it's of essentially little a flat, on longer second the on X%. side gravity at you quarter-to-quarter of defied to

So a again, We're UPR additives, in polyurethanes, the lot the those area, hit to is this pricing areas gas I of improvements spray also we've the to business, in which maleic catalysts. starting see treating. a started goes, demand, foam bottom. pickup and see think, in We've where anhydride in in

I so think we A additives definitely the bottom. the of forth. lot hit lube and

by by a on So gasoline, and of treating into gas initial lot going cards more station, oilfield fill that. And the so area. our a forth, be consistent that will that's formulation gas amine

I So that to we think I'm place deinventorying excuses, strong we quarter to or going as we have might there. we Frank, have make coming question it. remain pretty recovery were see hard that that And a I try continued of seen there, worst with a margins the of a certainly took behind And go along to a in it's business. demand we hit will a what might in so see we back. and recovery And but see MDI, think

we margins And pretty that indicated, have that margins and add, XX% operating mean, back we've as We’ll just for but XX% get strong range obviously XX% the the in low EBITDA were come Frank, volumes in leverage second a still to environment. are up to quarter division back. those towards our that I

last, that that also in the we we relief the area? might there when long ethylene out primary called How what you -- dynamics see what's competitive are And and pricing driver will with amines.

year be I energy we're the as world's think complete than of now, in that little Yes, a on seeing are bit just There major Europe, lot mean, drum growth it's and application. and America little that wind for it's to standstill. being at earlier, in North that Asia. in a of wind going a that. most and that's seen of a you've actually the much projects no as wind more just is a almost volume been bit I in

think gotten a of have people in this levels is their and been recovery this XXXX, delayed, A once I the lot canceled, So in built projects unnecessarily also some as stock some area. been XXXX. just see of that up have you'll have deinventorying these

they of chain think volatility kept was they and I having whether a lot people it the lot inventory, whether supply were a seeing more were ethylene it’s issues, MDI, lot amines in and of you a of of that they lot They and if more now inventory will, and supply about feel supply kept that various inventory of and derisking, reset. those being applications. a the is the confident chains inventory of pricing

is question from Stanley. Next Vincent from Morgan coming Andrews

it little Just continuing, given conditions and macro think us what update maybe to give going an the weak is be contribution the on you could you splitter maybe frame a bit?

but trying splitter there's the Well, the in per -- out premium I sell you it that I that think, And still very itself And represented to project, that will the a next -- there, and when pound continue recovering MDI, -- put today definitely we a market couple think see out will there is be product of correcting less to that as that that the It's if we glad be better I'm we again, that to a this commodity volume holds, we're a issue that success. temporary is quarters. be that did. differentiated project here will we will. over I much than are more

I mean million get that $XX much over said environment, that come to volumes premium component says, holds. differentiated million, Peter stronger side still as that was still up the as of in a we'll $XX volume we'd originally back,

XXXX. forward a and volume we to look recovery leverage as So a it's

lower about despite buybacks the quarter you've I we outlook? million be amount done then And the year-to-date. $XXX back a in Should share half think anticipating in a similar

the assess we'll the year, assess not of at in do for we see a outlook end where And our Yes, they'll accordingly. act Board we change obviously, are, that. will the and

capital do and And the return calculations, year. obviously of dividend share us the yield greater for gives if than you repurchases that a XX%

message the consistent year. the So start from of

Your from is Wells Michael Fargo. next coming question from Sison

Peter, up on in especially in polyurethanes commodities, three splitting your Analyst Day, formulary kind areas, that you talked systems, different solutions. of about portfolio

on get thoughts to time? for think your I digits when what those now, over this and so those is potential where any how to have margins performed the double about And back right three year buckets are

So I think no.

As will, I that margin of it, with we the we're that three think in end margins of taken those areas. split, those areas, place the erosion if and has struggling look at seeing that end upper of you that we're split, lower

we be that, protector strong been the of product see There's end of what and your have running into the higher question upper it's margins you, volume. As and and that, margins. would no about so shoes, cabling to end the elastomers iPhone going end, and end think erosion in that forth, just very that's end the high the elastomers a the of we the continue

So that part going nothing in polymeric forth, foam insulation, spray and which the of be that very think bottom would is consider that like down at into but that, certainly so the the pressure the under is and I that I split. of middle to the that commodity

we're of the of health between think margins the did I that bifurcation we're than of -- midrange so three and sections And Investor probably time, the yes, that at seeing the we and even high and end this Day. time at vitality the an end, of the greater probably low

billion volumes the your $X like this did last in And down guess it math, and I in then I so maybe year total, year when looks or sales.

are million, $XXX If back range EBITDA we million $XXX that to longer that term? you get back

we've here in to into a we that yes, and on and this we this as that that's average business question basis up much be more downstream an more for sure be and And I think elastomers the consistent think reliably for to build term are molecules opportunity value. pushed and of real the XX% the as that the as being to and we think should XX% -- on normal to closer to a business. is like Again, I'd upgrade a times at we'd more us of take MDI further that is that's and And a not is get business, XX%. see really least ought to Huntsman to have and as longer like it's presently I'm a business that earnings. to we move to that at got those see happening XX%, the volume it question opportunity forth, reliable where like and least, I'd create so something the

from Patrick Your is coming from next Cunningham Citi. question

the be and outlook quarter, expectations, to was industrial and in indicated you that maybe and Products, have some that destocking? any bakes Performance the de Last margin ag destocking you minimis do there half. change of a of much to those destocking second likely in for But markets relatively AM is like how in fresh

at pricing business. and pricing quarter. and bit that of segments a lack products a the demand not there indicative of of a nature in that's but going I be you European Ag results Performance been if it's board. there's to just as products in competitive of of pretty of lack disappointed, go -- look would on the to look the But is discipline, across lot There's the in might all the into of Europe, Products small, in guess, will. be I a I say to third going destocking little longer I I've seasonal,

the the impacted in most deinventorying. on Materials. Advanced yes, might from the when products to quarter at by Materials particularly see shuts where than And now the for the Products longer a we essentially a of quarter. in part right to region. economic world, we But being Europe. much bit August. but flat, side were of the Europe first and might the say, be will board Remember, through think quarter Europe, little business, some might sluggishness too seasonality more month closures we're in from the because a that I largely Performance be see the down And second go lot Advanced it early little I think frankly, might little you of performance across For in of look And bit third we of there a

that's You closures for see holidays yet than seen. more place to taking August in be might expected,

some be quarter. will the there third So seasonality in

to in or And and get margins the volume outweighed largely improved there by in XXXX, given a is Is path back you've some past, you initiatives growth of to the getting talked the recovery? have this a about of cost sort profile AM there sluggish XX%.

that well particular, aerospace the that. think we it's seen rate benefit see to I in to -- from business we're think been the I you've publicized as build No, going in that continue very

the the think look Airbus some coming -- that's as maintain to of existing the forth. platforms and that the market XXXX continue out continue platforms. We we will at and Boeing And wing share on of I so airplane design and of applications

think these that as I XX% market we'll well. share continue new a to applications than maintain better in much

that aerospace course that our that, if yes, to than recover will we we up be that in So well. the to think continued aerospace, said back see materials of as I just ought recovery present maintain Having ‘XX XXXX I in just XX%. advanced more we think plus in can kind

and think coming great greater see the I Miralon start in pickup start see you'll our investing to there the into grid, of to power industrial there's going technology, applications applications you'll some forth. get to just of opportunity and -- it's but have XX%. excellent coatings think back XXXX to feel I the so we gut an And my going to area, again, it's in

with And second that's not but needed. in was at it anywhere recovering, to still near look, were the where aerospace XX% we back quarter,

So even close quarter. XX% pretty to that in second the we're

Your Hassan from is Global. question next Ahmed from coming Alembic

be addition potential move a Appreciate the potentially the picture? and number capacity obviously, mean, talk of how commentary around restock of across fairly of lot demand could from the historically, destocking the about could you we -- supply come announcements we I polyurethane and impressive. because demand side, tends bit like. we've and the behind commentary, If sort could delays us away around just a to of being sort

medium face in So could we of the term, the limited of the in relatively to near situation as be restock sort supply? a it's where happens in

So we Hassan, think I said.

go MDI relatively where pretty the now, utilization, unusual to right demand for two low. So side on years it's low

profile X% looking plus So to with that to we'd out expect tighten annum forward, demand forward. going per growth

side, announced has North of way which not one that point China, on or Huntsman. anything to, America expansion either On Covestro, small confirms supply in can in debottlenecking America. and the BSS no in you really delay the any honestly, obviously, some Dow announced there's North only your point,

really down years capacity they'll bring an to will disciplined five they but So next disciplined, the over we said, pretty as to in manner, be do it tends it's And one. a on relatively to doing XX% to lead fact you XX% the the any share that other that market they have The with expansions some majors described. that that tightness in can particularly the of aren't really China.

things. about And just being historically, unrealistic. well of talked as of moving as participants on industry side on M&A bit the have you guys valuations I a mean bunch a

they relatively rates like, mean, are demand, the equity Now market? negative or private has active. tepid and M&A are what you It of seems with interest gotten several in I where seeing quarters guys the certainly more

little you are So opportunities have seeing growth guys valuations more of realistic, on more side things? the inorganic there become are a

fundamental shift Not the really. market. I'm not a in seeing

don't the a companies times, nowadays X stock are seeing year times, on down XX that their impact as bit. really you're any that a I are where a seemingly assets that care. think not be at just shareholders buying times, times and Obviously, seeing to trade ago, valuations of I coming cost -- times, bit continue costs X EBITDA, XX nothing. XX little capital befuddled something And then

a to to to simultaneously I a plan demonstrated remain in to we'll and of our little that to market be going in cliche. we the and grow multiple But see. if be company buy because we else to have and sometimes that cutting integrating sounds higher forward. like is right to doesn't If a be mean of rare a focused it, the own a going can't invest we'd think multiples these pay -- continue that, very have thorough able than dividend. instances, it's will everybody think we buy a not, and the -- a stay will remain disciplined. that those action I we've own just on we very our But bit very that to I So costs to business, bit with the maintain quick to clear sure that to justify know But and map we wants make do. because disciplined thing we've stock got and

Credit next Suisse. question today Roberts coming Your is John from from

for into their the benzene. in I industry that bid MDI opinion? significantly being your relatively oil of successful in back If think does Abu structure is change industry Covestro, Dhabi the unintegrated of the and

nitrobenzene But I'm as day, think my speaking consider does. not I end into come to sure Dhabi of better to would what's crude produce that don't I benzene, our because of we're do materials market anything to oil have little their have right? and of be MDI, Yantai, able push at zero of on going through integrated benzene have essentially I I want far on I And to benzene Covestro, them, just downstream of either an the and that to into it you again, to with to crude Abu mean all that and it’s basic to than there. them the going you my and basis happening make or have mix look, those kind we the value get other more for molecule that on Because and that comments value oil looking MDI. it producers. the up behalf to products, at than a sure value benzene price at opinion, formulated have from be would upstream that -- look will In But being premium raw going say the production be refining. same. I produce just MDI a will integrated of I all of a that and don't greatest integration a coal, information a

I'm able necessarily to benzene you're market. if advantage subsidize just unless that sure not integrated But got benzene be that to may on an your you you benzene, a benzene. value that cost gives just an loss move integrated you You because the making, MDI at on to want get you've the

by particular MDI of in thought of or never lack disadvantaged I've So being terribly integration. as advantaged

is than MDI what of the do value far be upstream. to going going think to more do I what is you downstream you -- of MDI

the problem that than delay in of for industry in is a more And more turbine problem the the now? more is wind which Chinese epoxy or right the lower material that raw the they're the is producers, Western it producers the position projects have

us whole BLR. when it's about at years Huntsman, a and where ago, I'm market not really big sure compete not epoxy we on market think a us, use for just was end -- for that's we the that XX not

these make much wind the rather we used in last mills themselves. ago, the impact that's grid the investing we over to of decade those it used wind. projects remember wind about be we up electrical You'll And XX in talk sense wind to wind years all the into the and and largely that's -- to molecules the try all of going traded hook going infrastructure projects all that I'd time aerospace up than into system to these

[AdMat] markets. but and John, XX% being the XX% XX% construction, think any aerospace, don't auto, portfolio about excluding into in about participate those where remainder about wind, as into infrastructure we

things Now can environment. XX% in ultimately the in grid, we deliver why participate power a lower is volume margins we like which even

Your Partners. next question Mike from today Seaport Research is coming from Harrison

at you're you're It was about indicating feeling your I Peter, energy more of talk costs. this softer like in kind seems Europe and could period how wondering of cost about elevated you demand point? extended structure if a

I And year pretty it ago about mean conclusion a that to decisions. of lot closures, we were from of radical we're some forth, we coming the a here largely quarter crack think next was that or at benefiting look time. out. our at are having made I back so. offices restructurings announcing those couple the and moving think something all so -- time to this next Those that Well, in I projects

to I where out and may over continue the go Europe two Middle are and and and to the from industrialization leave we they we're have if to hearing to that place see customers well industrialized customers, as go you in the the next can and to to Europe China, Now my the forth. the to structure. bigger we look forth comfortable America, year be or see what cost today reassess I'm and East. is of to this market course taking continues start quite to see concern -- they go they And see what you North so we Europe, so that we OEMs start

accused that over in think being at of right these we the moves of we the I time I took reactionary were being decisions. some know

I'm to think, Europe. first and all We've in in it, got Europe have to Europe be look I continue the how do better a the done. morning count we right still that cost was right need survive area good work it. We've that adapt and have we and because return at looking And the back to got of we to we're locations It's we prosper every got think just as I around said to, and we signs structure. in continue a and people fundamental need though, did we how chain this to saw glad a I right and and Europe. haste restructure shift do we've there to in supply in the with Europe I there's in moved having sense, the on makes an we don't that want to it. earlier, at area that

lower? the sequential a SG&A coming benefit $XX I much sequentially. how And to trying of that get longer term sense SG&A to was cost and of doing? in R&D Slide incentive that then of related part improvement temporary you're factors how was much that X coming show some accruals costs I'm optimization maybe just lower from million on you guess presentation, Was costs a of the and

So XX-XX. you that can think about being

remarks, run all optimization doing cost offsetting inflationary continues I of think flowing of P&L. which and our an the number, on that reduction some we're clearly the incentive through all our obviously accruals said in through year, prepared to for then in we combination

from is Spector question Josh from coming UBS. Next

two Just on Materials. Advanced

So of segment been notably has just first, the that better than in the portfolio. pricing the rest

though within future negative back I a volumes about the exit Just the that of products versus pricing different relatively even do the curious even pricing? do I BLR in in volume some absolute small mix as those exit having position you the you you're of -- And the is of raising holding note that though participation how guess higher is holding market think as second, or and DLR in plan much stay on some guess, that today, side. you versus or maybe portfolio just today? strategically

overall The think applications. that the market. many just going some to the BLR the again, we fact be as is, it of markets, is these is But in look think we're of we and the portfolio I health still continuously it largely that that be look, continue that, to the we're of of need No, keep areas sourced as going to to most at to product shift. going I

the profitability that heavily seen that of look the are you look think I getting made out of a volume we when drop competitors our I value some across decision when over at stability and in we the it of off that focusing of BLR. it's right did the very having of Again, some on board, at invested end and we've in the that think BLR of you business.

we're to long mean continue deselect I it. but BLR in Asia, strategically. degree now I Europe a and volumes, it's we'll less It's in our of North just focus XX% America short to than not think in our

the actually in on business And other downstream are because the just mix you the is business? holding or areas holding pricing better I guess of pricing that better of than side,

it's the again, holding that, think pricing. I

a to that's a whole different selling molecules. selling not selling I just solution solution you downstream than provider we’re customer and molecules, think that go on have the the we are provider. further you more unique We're a a dynamics

majority going going going to some it's be to of it's be So vast discipline. be and of value to pricing mixed, -- just that's the

from from Next TPH. coming Blair question is Matthew

in and just then going MDI Peter, line how overall this things are plant earlier year, on MDI regards Geismar the region operates that you by to is Rotterdam Huntsman, restarted industry discuss an could the down? basis? And still at you

yes, we're around shutdown about full there. we been out. Asia, that running board And But running all and inventory in, XX% XXs lines Geismar, around a yes, under maintenance doing the that got that, the would Rotterdam, plant when we've I think Rotterdam probably we're XX%. the low control. across in be bouncing globally, still working, I area. say, we've Asia, well, can, work will

recently from their sort position. in to similar curves? take any material space impact cost which the global on clearly of getting having and company competitors improved China another chlorine then that Is that cost were And dynamic mentioned paid in the occurring benefiting MDI is

the give supplier will take me. a if to not you they aware chlorine, MDI, that but take happening can me in give name will I'm of of I as much will pay that me as

I into the process downstream MDI, HCL, price China, PVC the market. mean in It's producing process to into that produce market, process. need of the the part byproduct goes have overall you an PVC the Yes, in you right, we MDI quite the quite and of recycle a move that where part it's don't as normal HCL unit of normal but overall of down

is coming from question Arun Capital RBC Markets. Next Viswanathan from

level the I of a level question, high I think guess. getting kind just end seeing earnings about your I'm have guess just When markets what I and a cyclical this I characterize your that you how customers, know more wanted would in from you versus -- you're believe do we're to I of you kind maybe with destocking. call end the the get the on you trough. noting your thoughts nearing and of started that

you maybe Automotive what to not? that or drivers of whether you'd be some activity So kind expect some kind what keep of that to on, of of to thoughts level of well. would What seems this have of trough it as you are monitor be larger the on of of kind we're of better higher And climb leads kind a statement? holding up are primary kind pretty China? us or this, you some leaving out inventory out weeks would

we in even will, and of economic hard I and Well, if seen it doubly past aerospace GDP off because from as we've be Europe recovering -- in that a -- fall places we've think cycles, like forth. this still been in time whether it's think past you still I and COVID so at in look activity hit inventories and construction,

deinventory barrel one So oil activity, most back I saw what crash think globally recession, when has during I there. demand we've and from $XXX what economic the basis, we're with we 'XX, the crude crude coupled today in seen severe aggressive point, more so a world think $XXX, it's forth. 'XX oil of been hit one seeing a of than of crash and the fall What thinking the at of off around

seeing taking a also just combination, than speaks -- not seeing, activity, And place, deinventory we're we're of slow that's that Arun, of a nothing to but so that economic double more US for that's dropped to that XX%, in going the dropped that unsustainable continue. Housing into seeing a we're what term housing. to starts basis long Again, and XX% XX%. products on

a the hit we've a growth as composite recovery it again, traditional as look pricing more quarter volume come is from are think what see a to to so all the forth, digit that leaves gradually down be we're we volumes back, see seen to and they're than materials, volume products lot to more just place, this that more that about think is that where to margins need be. we our at We're foam to bullish quarter in And of think fact looks, a intact, to return once double we as first in back be the to X%. spray got And drill little to still earlier, insulation, second come to digit how I we've we've it drill. a wood, X% ACE flat a that's And earnings. definitely that normalized growth basis see we otherwise in of going around than more that starting flat I a would quarter-on-quarter. and me still going and volumes said in single first volumes. see are I As We bottom there we the performance

We reached question-and-answer today's and And webcast. that does session. our conclude the end teleconference of

time a this have We for participation thank wonderful today. and your You may disconnect at day. lines your you